Third Quarter Financial Results

Minera IRL announces Quarterly Report for period ended 30 September 2010

HIGHLIGHTS

·; Corihuarmi third quarter gold production of 8,748 ounces, up 11.4% from 7,850 ounces in the same period in 2009

·; Third quarter gold sales of 9,053 ounces, up 13.0% from 8,010 ounces in the same period in 2009

·; Third quarter realised gold price of US$1,236 per ounce, up 27.2% from US$972 per ounce in same period in 2009

·; Sales revenue of US$11.2 million, up 42.5% from US$7.8 million in the same period in 2009

·; Gross profit of US$4.7 million, up 47.6% from US$3.2 million in the same period in 2009

·; Loss before tax of US$0.9 million due to the previously announced decision to relinquish and write off the exploration expenditure for La Falda and Killincho exploration projects of approximately US$2.9 million

·; Loss after tax of US$1.7 million

·; The Pre-feasibility Study of the 1.3 million ounce Minapampa Zone gold inferred resource at the Ollachea Project progressed with in-fill drilling over the Minapampa Zone completed

·; Drilling has reverted back to the new Concurayoc discovery at Ollachea, located 500 metres west of the Minapampa Zone, where the objective is to drill define an inferred resource

·; The Feasibility Study on the Don Nicolas Project in Patagonia progressed with in-fill drilling substantially completed

·; Also in Patagonia, scout drilling at Escondido has identified a new discovery with gold mineralization immediately adjacent to the Las Calandrias discovery announced by Mariana Resources Ltd.

·; Draw down of US$10 million of the US$20 million Macquarie Bank Limited facility

·; Cash held of US$5.4 million at 30 September 2010

·; Post third quarter end, Company completed a successful equity raising for gross proceeds of approximately C$37.5 million or net proceeds of approximately C$35 million, by issuing 32,641,600 ordinary shares at C$1.15 per share

Chairman's Statement

Great strides are being made in building Minera IRL. We sense growing market recognition of our asset base underpinned by the cash flow and strong operating performance of our Corihuarmi Gold Mine. The million plus ounce Ollachea gold system in southern Peru remains open ended with ongoing drilling success. The upside on our mining and exploration leases in Patagonia, Argentina, has been accentuated by the announcement of a new gold/silver discovery at Escondido. Indeed, this area of Patagonia, the Deseado Massif, continues to emerge as an outstanding new precious metals district.

Market support has been crystallized in an equity raising of C$37 million, heavily over-subscribed, which was completed in early November. The new equity raising takes on further significance in that it adds a broad base of North American institutional funds and retail investors, which is expected to provide the exposure needed for a potential increase in liquidity which has been lacking in Canada since the TSX listing in April 2010. These funds place the Company in a sound position to bring two more substantial gold mines to the point of development.

The financial performance for the three months to 30 September 2010 was sound and, from the gross profit perspective of US$4.7 million, a substantial improvement on the comparative third quarter of 2009. Gold sales were a solid US$11.2 million on the back of higher gold production and a continuing strong gold price, with spot sales averaging US$1,236 per ounce. Administration costs increased to US$2.5 million largely as a result of the expense of the listing in Toronto. During the three months the Company took the decision to terminate two exploration projects, which necessitated a write off of approximately US$2.9 million. As a consequence a net loss before tax of US$0.9 million has been incurred. This, together with the tax charge of US$0.8 million, which arises solely in Peru, gives a loss after tax for the three months of US$1.7 million. EBITDA was US$1.0 million, to which can be added the write off charge to give a pre-exploration write off EBITDA of US$3.9 million. The cash balance at the end of the third quarter was US$5.4 million with the proceeds of the equity raising yet to come.

Our Corihuarmi Gold Mine continues to perform very well with gold production of 8,748 ounces, approximately 10% above budget, bringing production for the first nine months to 23,918 ounces. Mining activities were largely concentrated on the Susan outcrop. Cash costs averaged US$378 per ounce for the quarter, reducing the cost for the first nine months to US$390 per ounce.

The Pre-feasibility Study on the Ollachea Project in southern Peru continues to make excellent progress and remains on schedule for completion during the first half of 2011. The 39 in-fill diamond drill holes in the core Minapampa Zone have been completed bringing the total in this zone to 88 holes for almost 32,000 meters. This database is now with our resource consultants where an upgraded resource is being estimated, previously 8.9 million tonnes grading 4.5g/t gold for 1.3 million ounces in the inferred category, and is expected to be available by the end of 2010. Good progress was also made on other aspects of the pre-feasibility study including finalization of plans and commencement of permitting for a 1.3 kilometre long exploration tunnel into the deposit, metallurgical test-work, geotechnical evaluations and information gathering for the environmental baseline report. Drilling has since been redirected to the new Concurayoc zone, approximately 500 meters west of the Minapampa Zone, with the objective of generating an inferred resource by early 2011. The gold bearing lenses in the Ollachea orogenic, slate-belt hosted deposit remain open along strike in both directions as well as down dip.

In Patagonia, good progress has been made on the Don Nicolas Feasibility Study, due for completion in mid-2011. By the end of the third quarter, in-fill and step-out drilling had been largely completed on the two principal deposits at Don Nicolas with assay information progressively being forwarded to the consultants who are working on a resource upgrade. Other aspects of the study, such as advanced metallurgical testing, geotechnical studies and a hydrology program are in progress. Argentinean engineering company Ingenieria PENTA Sur SA has been engaged to produce the feasibility report.

Exploration continued on a number of fronts on Minera IRL Patagonia's 2,700 square kilometre tenement package in the Deseado Massif. A high-resolution airborne magnetic and radiometric survey was completed over four project areas early during the third quarter. Final processed results received to date are confirming the high prospectivity of the Patagonian tenement package. First pass scout drilling identified gold and silver mineralization in ten of the eleven holes at Escondido, contiguous to and immediately south of Mariana Resource Ltd's Las Calandrias discovery. The significance of this is that the Company is now party to a substantial precious metal mineralized system with bulk tonnage development potential. Further drill testing will commence before the end of 2010 to begin defining the extent of the Escondido discovery. In addition, the new geophysical database has defined numerous new anomalies yet to be explored on that tenement.

Exploration drilling has commenced at the Pan de Azucar exploration project located approximately 65 kilometres south of the Don Nicolas Project. The target is the down dip extension of a 1.3 kilometre outcropping vein with elevated gold content in surface outcrop.

During the third quarter a decision was made to terminate the Company's involvement in two exploration projects. Results from a 5,174 metre drilling program at the La Falda Project in Chile, where a Maricunga-style gold porphyry system was targeted, did not justify continuing to the next stage. At Killincho, in southern Peru, gold mineralization was identified by the exploration team but was not deemed to have sufficient potential to achieve the Company's target objectives and has thus been relinquished. Expenditure incurred on both projects has been written off in the September quarter.

October 2010 marked the tenth anniversary since the first tentative steps were taken in Peru to establish Minera IRL. Over the past decade, the foundations have been carefully laid with one highly successful gold mine, two advanced precious metal development projects in the pipeline and an outstanding gold exploration portfolio. We now have the projects and the momentum required to consolidate our future and a highly accomplished team to achieve our goals. This is at a time when we have attracted many fine new shareholders. To these I extend my sincere welcome and I thank our long standing shareholders for their continuing support in building our Company.

Courtney Chamberlain

Executive Chairman

Minera IRL Limited 13 November 2010

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Consolidated Statement of Comprehensive Income

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Consolidated Balance Sheet

Minera IRL Limited

Consolidated Statement of Changes in Equity

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Consolidated Cash Flow Statement

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The Directors of Minera IRL Limited are listed in the Group's Annual report for the year ended 31 December 2009.

By order of the board

C Chamberlain

Executive Chairman